Answered: PepsiCo, Inc. is an American…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Solve on excel.

PepsiCo, Inc.
(from SEC fillings)
Net
Revenue ($million)
Quarter
1st
Year
$12,049
$15,710
2017
2nd
3rd
$16,240
4th
$19,526
2018
1st
$12,562
$16,090
$16,485
$19,524
$12,884
2nd
3rd
4th
2019
1st
2nd
$16,449
$17,188
$20,640
$13,881
3rd
4th
2020
1st
2nd
$15,945
3rd
$18,091
$22,455
4th

Transcribed Image Text:PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Purchase, New York. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products. PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which included an acquisition of Tropicana Products in 1998 and the Quaker Oats Company in 2001, which added the Gatorade brand to its portfolio. As of January 26, 2012, 22 of PepsiCo's brands generated retail sales of more than $1 billion apiece, and the company's products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, PepsiCo is the second largest food and beverage business in the world. Your consulting firm has been hired to forecast the total revenues for PepsiCo, Inc. for each quarter of 2021. The company's past seasonal revenues are located below. Total Revenues (Smillions) Quarter 2 $15,710 $16,090 $16,449 $15,945 Fiscal Year (FY) Quarter 1 $12,049 $12,562 $12,884 $13,881 Quarter 3 $16,240 $16,485 $17,188 $18,091 Quarter 4 $19,526 $19,524 $20,640 $22,455 2017 2018 2019 2020 Before continuing to the problems below, construct a time series plot (line chart) of PepsiCo revenue data. Use the data and this chart to answer the questions below. Apply smoothing techniques to forecast PepsiCo revenues. 1. After further investigation, you believe to create a proper forecast for PepsiCo's revenues both a linear trend and seasonal impacts must be taken into consideration. Follow the subsequent steps to create a multiple regression equation to account for both a linear trend and seasonality. (a) Create a column for t to represent the time period. Thus, t=1 refers to the observation in Quarter 1 of 2017; t= 2 refers to the observation in Quarter 2 of 2017; ... and t= 16 refers to the observation in Quarter 4 of 2020. (b) Create the following dummy variables: Q2 = 1 if quarter 2, 0 otherwise Q3 = 1 if quarter 3, 0 otherwise Q4 = 1 if quarter 4, 0 otherwise Use the Data Analysis add-in to develop an estimated regression equation to forecast PepsiCo's revenues [F = bo + bit + b2Q2 + b3Q3 + b4Q4] using the time period and the quarter dummy variables. (c) Using a= 0.05, discuss the significance (R-square, F-test and t-tests) of the equation in part (c). Compute each quarter (1, 2nd, 3rd and 4th) of 2021 using the multiple regression (d) (e) equation in part (c).

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